New Delhi, Feb 17 (IANS) Gold and silver prices declined for a second consecutive session on Tuesday, as investors analysed mixed US economic data and waited for cues on the US Federal Reserve’s policy path.
MCX gold April futures dipped 0.56 per cent to Rs 1,53,889 per 10 grams on an intra-day basis. Meanwhile, MCX silver March futures declined 1.18 per cent to Rs 2,37,064 per kg.
Investors remain undecided on whether softer inflation readings will eventually translate into easier monetary policy or whether stronger labour market data will keep rates higher for longer, analysts said.
The dollar index surged 0.21 per cent to 97.12, tracking the moderation in US CPI (consumer price index) in January. A stronger dollar made greenback-priced bullion more expensive for other currency holders.
In international markets, spot gold dipped below the $5,000 mark to $4,992 an ounce and spot silver slid nearly 3 per cent. The ease in prices came as US consumer prices in January rose less than expected even as job growth surprised on the upside, complicating the outlook for near‑term rate cuts.
COMEX Gold is trading within the $4,850–$5,100 range after a sharp correction from recent highs above $5,500–$5,600, analysts said.
Ease in geopolitical tensions also reduced safe haven demand for gold as an Iranian diplomat said that Iran is seeking a nuclear agreement with the United States that would yield economic benefits for both sides.
"Gold has support at Rs 1,45,000 and Rs 1,50,000 while resistance at Rs 1,60,800 and Rs 1,65,000. MCX silver has support at Rs 2,25,000 and Rs 2,60,000, and resistance is at Rs 3,00,000 and Rs 3,25,000," an analyst said.
The broader trend in precious metal remains constructive due to ongoing geopolitical tensions, strong central bank buying, and investor flight from sovereign bonds and currencies.
Investors remain keen on cues over global liquidity conditions, US dollar movement, bond yields, progress on the US-Iran talks and ongoing negotiations to end the Russia-Ukraine war.
—IANS
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